Is Now the Right Time to Invest in Real Estate?

You see it on the news every evening…foreclosures continue to rise. Prices continue to fall. But there is some good news as well, sales are up. That’s right the market for foreclosures is booming and sales are rising at a steady rate. Short sales are selling as well. Does this mean it’s time to finally get into the real estate market for a good investment? Who knows? But if you think it’s the right time for you to get in on the deals consider a few things.

Qualifying for a home isn’t as easy as it used to be and most people will need a down payment. If you are a buying a home to live in you may be able to get an FHA loan with only 3.5% down and asking the seller to pay your closing costs. If you are buying a rental, be prepared to put 10% or more down and probably closer to 20% plus your closing costs.

Remember that home prices may not stabilize for a while longer so don’t get caught in bidding wars with too good to be true foreclosure prices. The banks prices their homes low for a fast sale at a higher price so don’t fall into that trap.

Homes are not the only real estate investment out there. Vacant land has dropped significantly as well and many vacant land sellers have the ability to call the paper on their land. Before the bottom fell out many small builders and investors were buying land lots, building homes on spec and selling at a significant profit. Buying a lot now for future use may be an excellent investment since building a home is not necessarily a quick process. You’ll need to plan for many things and you’ll need home plans before you can plan much of anything. There are many different Home Plans to choose from featuring different sizes and styles and amenities. Vacant land can be an excellent investment and spec homes are a gold mine if done properly.

Whether you are buying a home to live in, to rent or a piece of land for a custom or spec home remember we are not out of the woods yet but there are deals to be had if you are in the right place at the right time. Be on the look out.

Temecula Real Estate...What to Expect When you Buy a Foreclosure

It's inevitable, with the number of foreclosures on the market right now some of you may find yourself buying a foreclosure. They are a great way to get a great value. But will the end result be worth the hassles and delays of the transaction?

First of all, not all foreclosures are a hassle, in fact many of them may be as easy as buying a home from an owner seller and it will mostly depend on your real estate agent. A good buyers agent will deal with and solve the multitude of minor but annoying inconveniences often related to a foreclosure purchase. Most of these are just the normal delays of dealing with a bank and usually few of these have anything to do directly with the buyer but rather revolves around slow and incomplete paperwork from an out of state management company or bank.

A good buyers agent will make the transaction seem effortless with few if any problems. An inexperienced agent will have their clients in a state of frenzy from the get go simply because they don't understand these delays are normal and rarely effect the outcome of the transaction but are rather one of the hurdles overcome on daily basis in a foreclosure.

Another factor that will effect the purchase of a foreclosure is the experience of the listing agent. While browsing through the MLS recently I've noticed many newer inexperienced agents are listing foreclosures. This is most often because their spouse is a loan officer for the lender and has gotten them the listing. If the listing agent doesn't know the process of a foreclosure and the normal and usual progression of a foreclosure sale they can make a transaction a nightmare as I recently experienced. My clients never new of all the mistakes the other agent made and is still making. The home has closed and my clients are happily living in their new home. The listing agent has taken some big hits on commission due to her lack of knowledge regarding the paperwork and I'm still waiting for needed paperwork. But the important thing is my clients got a great deal with few if any inconveniences on their part because I didn't run to them everytime the lender or the agent did something to cause problems. I just handled them, that's my job.

If you are experiencing a particularly troublesome foreclosure transaction take a close look at the problems. Is your agent giving you a daily report on all the problems the other agent and bank are causing? Is your agent calm and professional or is he or she more stressed than you? These can be signs of an inexperienced agent dealing with a normal transaction.

What Makes a Bad Real Estate Agent?

A bad real estate agent just like a good one, can come in many forms; from shifty devious and untruthful, just plain lazy, to uninformed or just doesn’t care. Unfortunately many people got into real estate to make a fast buck, they thought it would be quick and easy and never took the time to learn the industry. Many of these people are out there walking around representing themselves as real estate agents, giving the knowledgeable and well trained agents a bad name and reputation.

How to Spot a Bad Real Estate Agent

One important tool everyone can utilize is a thorough interview with pointed questions designed to weed out agents who don’t know what they’re doing. Ask questions that require some thought and look for answers that reflect that thought. Questions like

"How is the market doing" is a question many 5th graders can answer, but questions like "What marketing plan do you have in mind for my house and what benefits of this plan will work best for my situation?" Now that’s a question and an agent who doesn’t know what they’re doing won’t have a clue how to answer this. Make sure you know what’s going on in your neighborhood so you can ask potential agents the same thing. Every listing agent should know the area they’re working. Most good buyer’s agents have sound negotiating tactics designed to get their buyer the best deal, but not all situations will be the same so find out how they plan to approach a foreclosure or a short sale as apposed to an owner seller.

Always go to the DRE website and search agents you’re thinking of hiring. This will tell you how long they’ve been an agent and if there has been any disciplinary action against them. If they have other listings in the area talk to those people and see what they have to say about the agent. If you have a “FEELING” about the agent good or bad, trust your instincts.

The key to finding a good real estate agent is a thorough interview, coupled with good rapport and a good DRE record. Don’t leave your biggest asset in the hands of a BIG ASS. Take the time to find a good agent, get some real estate education and you’ll see what a pleasant real estate transaction is all about.

Do I Need A Buyers Agent?

The Internet has made finding a home so much easier these days, and often buyers wonder why they even need an agent. But finding the home is only the first step in buying a home and many times it’s the easiest step as well.

A buyer’s agent can be your biggest asset and your best ally, all at no cost to you. So why would any buyer, in their right mind turn down professional now cost service? Beats me.

For a buyer, there is no cost of taking advantage of the services of a professional real estate agent. The seller’s agent charges a commission, then offers a referral fee in the local MLS to the buyer’s agent. The buyer’s agent will only get paid for bringing a ready willing and able buyer who purchases the home and is only paid upon the successful closing of escrow.

10 Reasons the Buyer Should Have a Real Estate Agent

1. A real estate agent knows the homes available for purchase and has access to these homes even when the seller isn’t home.
2. The real estate agent has access to the local MLS which will provide additional information regarding listed homes.
3. A real estate agent will drive buyers around using their vehicle and gas, so buyers sit back and relax. And if they play their cards right the agent may spring for lunch as well.
4. A real estate agent will help and advise the buyers on negotiating tactics to help them save money. This is especially true for short sales and foreclosures.
5. A real estate agent has access to all the needed paperwork, has training in all the needed paperwork and can explain the buying process.
6. A real estate agent can handle all the necessary paperwork to protect the buyer in the home buying process. It’s absolutely crucial that your paperwork is prepared and handled properly. This will help avoid lawsuits and other legalities later down the line.
7. A real estate agent will help the buyers find home inspectors and meet them at the house if the buyer isn’t available.
8. A real estate agent will help the buyers locate utilities and other companies to help in the moving process.
9. A real estate agent will handle many of the small problems and details between the two agents, escrow and the lender so the buyers are not bothered.
10. A real estate agent will do everything in his or her power to protect their client and ensure that the purchase runs smoothly and closes on time.

A real estate will do all these things and more for their client, at absolutely no cost to the buyer. That sounds like a great deal to me. I always like something for nothing. So next time you wonder whether you need the services of a buyers agent, call me and I’ll remind you of the 10 reasons why you need a buyers agent.

Temecula Foreclosure Auction

A Foreclosure auction of astronomical proportions will be held November 6th at 7pm at the Temecula Creek Inn. The website shows 80 homes in and around the Temecula Valley and feature modest Sun City retirement homes to upscale Murrieta and Temecula locations. These homes are currently listed for sale with various real estate agents and are also available for bid now via the website at

http://www.hudsonandmarshall.com/listings.asp?subsaleID=2385&auctionId=379&display=Sale+Number+3%26nbsp%3B%2D%26nbsp%3BTemecula%2C+California%26nbsp%3B%2D%26nbsp%3BProperties++501+%2D+580

The big question on everyones mind is can a real estate deal be had? Well the answer is probably not, after all if any of these homes were a deal they'd have already sold. Lenders like some sellers still don't get the idea that the only way to sell a home these days is to offer an awesome deal.

The way these auctions work is by trying to create a buying frenzy. Hopefully buyers are smarter than to fall for this. The homes may start at seeming very low prices but the fine print often reveals the snag. The seller is not obligated to accept a final bid lower than a pre-determined price that is often not revealed until the auction is over. Very deceptive if you ask me and an insult to intelligent buyers.

When considering a foreclosure as a potential purchase consider these important factors. First, the listing agent has a fiduciary duty to the seller and probably an ongoing relationship. Most lenders discourage their agents from representing the buyer as well...for obvious reasons. NEVER NEVER use the listing agent on a short sale or foreclosure as the buyers agent. Instead find a buyers agent well versed in these two fields of real estate and let that agent negotiate the deal. PLEASE make sure the buyers agent you pick knows what they're doing and you stand a good chance of getting a good price on a nice home. If you use an inexperienced agent then you really have little hope of getting a decent deal. The buyers agent needs to do some hard negotiating and the buyer should be willing to walk away rather than except less than favorable terms. After all THIS IS A BUYERS MARKET!!!!

Smart Real Estate Investors Buy During The Holidays

Why do the smart buyers buy real estate during the Holidays? For most buyers and sellers the summer months represent the buying season. From June through the end of August buyers look and look for the perfect home and often miss the really good deals or pay more than they wanted because other buyers are out there also, looking for the perfect house. Because of the competition, buyers don't get the deal they were hoping for even in a slow market. That's why the smart buyers buy in the off season; September through February. During this time of the year sellers are frustrated because they haven't sold their home. Fewer buyers out at this time of year and sellers often view selling their home during the Holidays as hopeless. That's the perfect time for a smart buyer to swoop in and put the seller out of his misery, at a great deal of course.

With less buying competition and sellers feeling the pinch of having to wait another year for a chance to sell their home, the smart buyer has a great opportunity to get a great real estate deal during the off time of year.